(a) Notwithstanding subsections (c), (d), (e), or (f), an eligible individual may withdraw money from the individual’s health savings account for any purpose other than a purpose described in § 67-10-104.

Terms Used In Tennessee Code 67-10-105

  • account: means a trust or custodian established pursuant to a health savings account program exclusively to pay the qualified medical expenses of an eligible individual or the individual's dependents, but only if the written governing instrument creating the account meets the following requirements:
    (A) Except in the case of a rollover contribution, no contribution shall be accepted:
    (i) Unless it is in cash. See Tennessee Code 67-10-102
  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Code: includes the Tennessee Code and all amendments and revisions to the code and all additions and supplements to the code. See Tennessee Code 1-3-105
  • Eligible individual: means the individual taxpayer, including employees of an employer who contributes to health savings accounts on the employees' behalf, who:
    (A) Must be covered by a high deductible health plan individually or with the individual's dependent. See Tennessee Code 67-10-102
  • Person: includes a corporation, firm, company or association. See Tennessee Code 1-3-105
  • program: means a program that includes all of the following:
    (A) The purchase by an eligible individual or by an employer of a high deductible health plan. See Tennessee Code 67-10-102
  • Trustee: A person or institution holding and administering property in trust.
  • United States: includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b) Subject to subsection (c), if the eligible individual withdraws money for any purpose other than a purpose described in § 67-10-104 at any other time, then such amounts shall be treated as otherwise provided by applicable law.
(c) The amount of disbursement of any assets of a health savings account pursuant to a filing for bankruptcy protection under title 11 of the United States Code ( 11 U.S.C. § 101 et seq.), by an eligible individual or person for whose benefit the account was established is not considered a withdrawal for purposes of this section. The amount of a disbursement is not subject to taxation under chapter 2 of this title.
(d) The transfer of an eligible individual’s interest in a health savings account to an eligible individual’s spouse or former spouse under a divorce or separation instrument shall not be considered a taxable transfer made by the eligible individual, notwithstanding any other provision of this chapter, and the interest shall, after the transfer, be treated as a health savings account with respect to which the spouse is the eligible individual.
(e) Upon the death of the eligible individual, the trustee or custodian shall distribute the principal and accumulated interest of the health savings account to the estate of the deceased.
(f) If an employee becomes employed with a different employer that participates in a health savings account program, the employee may transfer the employee’s health savings account to that new employer’s trustee or custodian, or to an individually purchased account program.
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